The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Bhilai Jaypee Cement, a subsidiary of debt-laden Jaiprakash Associates Ltd, following a default of INR450m (US$0.512m).
The Cuttack bench of the NCLT issued the direction after admitting a petition filed by operational creditor Sidhgiri Holdings Pvt Ltd, which supplied coal to Bhilai Jaypee Cement and was not paid for deliveries worth INR450 m.
A two-member NCLT bench, comprising Members Deep Chandra Joshi and Banwari Lal Meena, appointed an interim resolution professional (IRP) and suspended the company’s board of directors. The tribunal also imposed a moratorium under the Insolvency and Bankruptcy Code (IBC),…